Data: 3 a 10 de novembro de 2008Lisboa, Londres, Madri e Frankfurt

CONCESSIONS OF RAILROADS

CLEILSON QUEIROZCLEILSON QUEIROZVALEC-ENGENHARIA,CONSTRUÇÕES E FERROVIAS S.A.VALEC-ENGENHARIA,CONSTRUÇÕES E FERROVIAS S.A.

NORTH - SOUTH RAILROAD NORTH - SOUTH RAILROAD (EF 151)(EF 151)

THE SUB-CONCESSION OF THE SECTION THE SUB-CONCESSION OF THE SECTION PALMAS (TO) –PALMAS (TO) – ESTRELA D’OESTE (SP)ESTRELA D’OESTE (SP)

WEST - EAST INTEGRATION WEST - EAST INTEGRATION RAILROAD(EF 334)RAILROAD(EF 334)

THE SUB-CONCESSION OF THE SECTIONTHE SUB-CONCESSION OF THE SECTION

FIGUEIRÓPOLIS (TO) – ILHÉUS (BA)FIGUEIRÓPOLIS (TO) – ILHÉUS (BA)

• Public company of the Ministry of Transport .

• Purpose: construction and operation of Brazilian railway infrastructure .

VALEC - Engenharia, Construções e Ferrovias S.A.VALEC - Engenharia, Construções e Ferrovias S.A.

  RAILWAY CONCESSIONS OF VALECRAILWAY CONCESSIONS OF VALEC

BELÉMBELÉM

PANORAMAPANORAMA

FIGUEIRÓPOLISFIGUEIRÓPOLIS

ILHÉUSILHÉUS

LITORAL DOLITORAL DO RIO DE JANEIRORIO DE JANEIRO

BOQUEIRÃO BOQUEIRÃO DA ESPERANÇADA ESPERANÇA

PORTO MURTINHOPORTO MURTINHO

EF 151EF 151

EF 334EF 334

EF 234EF 234EF 267EF 267

NORTH - SOUTH RAILROAD :NORTH - SOUTH RAILROAD :CURRENT STAGE OF CONSTRUCTION CURRENT STAGE OF CONSTRUCTION

BELEM

ACAILANDIAACAILANDIA

COLINAS DOCOLINAS DO TOCANTINSTOCANTINS

ANAPOLISANAPOLIS

ESTRELA D`OESTE

DESIGNED

CONCLUDED

UNDER CONSTRUCTION

DESIGNED

Belém

RIO DE JANEIRORIO DE JANEIRO

SANTOSSANTOS

Palmas

Estrela D’Oeste

ESTIMATED INVESTMENTR$ 3,5 bilhões

TOTAL EXTENSION OFTHE SECTION TO BEGRANTED2,600 MILES

NORTH - SOUTH RAILROAD :NORTH - SOUTH RAILROAD : SUB-CONCESSION SECTIONSUB-CONCESSION SECTION

SÃO LUIS

EF

151

FIGUEIRÓPOLISFIGUEIRÓPOLIS

ILHEUSILHEUS

Belém SÃO LUÍSSÃO LUÍS

EF

151

TOTAL EXTENSION OFTHE SECTION TO BEGRANTED2,384 MILES

ESTIMATED INVESTMENT R$ 3 BILHÕES

WEST- EAST INTEGRATION RAILROAD:WEST- EAST INTEGRATION RAILROAD:SUB-CONCESSION SECTIONSUB-CONCESSION SECTION

EF 334

EXTENSION OF SAVANA:1,8 milhão km2

AREA OF INFLUENCE OF THE NORTH - SOUTH RAILROAD: BRAZILIAN SAVANA

Soybeans and derivatives

   Soybean meal

  Soybean oil

   Maize

   Fertilizer

   Sugar

   Cotton

PRODUCTIVE POTENTIAL OF PRODUCTIVE POTENTIAL OF SUB-CONCESSIONS AREA OF INFLUENCE SUB-CONCESSIONS AREA OF INFLUENCE 

FertilizerFertilizer

AlcoholAlcohol

Derived from petroleumDerived from petroleum

ContainersContainers

Iron oreIron ore

BauxiteBauxite

RAILROADGENERAL

CARGOORE TOTAL

EF 151 115 100 215

EF 334 20 50 70

ESTIMATED DEMAND FOR TRANSPORTESTIMATED DEMAND FOR TRANSPORT (TON.MIL)(TON.MIL)

Term of sub-concession: 30 years

Provides resources: fully paid for the VALEC, as stipulated in the contract schedule and the announcement of the sub-concession.

THE SUB-CONCESSION PROCESS THE SUB-CONCESSION PROCESS

Law nº 8.987 ( February 13, 1995)

Law nº. 9.074, (June 7, 1995 )

Article 175 of the Federal Constitution

Law nº 8.666 ( June 21, 1993)

Law nº 9.648 ( May 27, 1998)

Announcement of the sub-concession, and annex

THE LEGAL FRAMEWORK OF THE THE LEGAL FRAMEWORK OF THE SUB-CONCESSION PROCESSSUB-CONCESSION PROCESS

The participation of individual Brazilian and Foreign Companies is permitted.

The participation of consortiums between Brazilian and / or Foreign Companies in one Consortium is also permitted.

Acquisition of the Bidding Documents.

The presentation of a commitment to form a consortium indicating the participation of each member of the consortium and the leader.

REQUISITES FOR THE PARTICIPATIONREQUISITES FOR THE PARTICIPATION OF COMPANIESOF COMPANIES

FIRST STAGE OF THE BIDDING PROCESS – PRE-QUALIFICATION

(Special Bidding Committee of VALEC)

Legal Qualification

Technical Qualification

Economic and Financial Qualification

Clean Fiscal Standing

STAGES OF THE BIDDING PROCESSSTAGES OF THE BIDDING PROCESS

Delivery of the BOVESPA’s instructions

  to the pre-qualified companies

STAGES OF THE BIDDING PROCESSSTAGES OF THE BIDDING PROCESS

SECOND STAGE OF THE BIDDING PROCESS – AUCTION IN THE BOVESPA

(The Sao Paulo Stock Exchange)

STAGES OF THE BIDDING PROCESSSTAGES OF THE BIDDING PROCESS

Deposit of the Bid Guarantee (two days prior to the Auction) Proceedings in accordance with the BOVESPA Manual Adjudication of the result based on the Highest Payment offered

for the grant of the Concession Disqualification of Proposals below the Minimum Value established

for the grant of the Concession Confirmation of the Winning Bid by the auctioneer Publication of the Result of the Auction indicating the winning company Creating a Specific Purpose Society for signing the contract

NORTH - SOUTH RAILROAD ( EF 151)

1st installment - 50% of the winning bid of the auction upon financial settlement - the signing of the sub concession - in conclusion of construction of the of the section Palmas (TO) – Anápolis (GO), scheduled for December 2010.

2nd installment - 25% of the winning bid in conclusion of construction of the Ouro Verde de Goias (GO) - Rio Verde (GO), scheduled for July 2011.

3rd installment - 25% of the winning bid in the auction in conclusion of construction of the section Rio Verde (GO) – Estrela D’Oeste (SP), scheduled for December 2011.

SUB CONCESSION PAYMENTSUB CONCESSION PAYMENT

WEST- EAST INTEGRATION RAILROAD WEST- EAST INTEGRATION RAILROAD ( EF 334)

1st installment - 40% of the winning bid of the auction upon financial settlement - the signing of the sub concession - in conclusion of construction of the section Ilhéus (BA) - Caetité (BA), scheduled for July 2011.

2nd Tranche - 30% of the winning bid in conclusion of construction of the section Caetité (BA) - Correntina / Barriers (BA), scheduled for July 2012.

3rd installment - 30% of the winning bid in the auction in conclusion of construction of the section Figueirópolis (TO) - Correntina / Barreiras (BA), scheduled for December 2012.

SUB CONCESSION PAYMENTSUB CONCESSION PAYMENT

VALEC – Engenharia, Construções e Ferrovias S.A.SAN – Quadra 3 – Sala 1100

Edifício Núcleo dos TransportesBrasília – DF

www.valec.gov.br

Data: 3 a 10 de novembro de 2008Lisboa, Londres, Madri e Frankfurt

THANKS !THANKS !